Correlation Between REGAL HOTEL and AGNC INVESTMENT
Can any of the company-specific risk be diversified away by investing in both REGAL HOTEL and AGNC INVESTMENT at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining REGAL HOTEL and AGNC INVESTMENT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between REGAL HOTEL INTL and AGNC INVESTMENT, you can compare the effects of market volatilities on REGAL HOTEL and AGNC INVESTMENT and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in REGAL HOTEL with a short position of AGNC INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of REGAL HOTEL and AGNC INVESTMENT.
Diversification Opportunities for REGAL HOTEL and AGNC INVESTMENT
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between REGAL and AGNC is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding REGAL HOTEL INTL and AGNC INVESTMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGNC INVESTMENT and REGAL HOTEL is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on REGAL HOTEL INTL are associated (or correlated) with AGNC INVESTMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGNC INVESTMENT has no effect on the direction of REGAL HOTEL i.e., REGAL HOTEL and AGNC INVESTMENT go up and down completely randomly.
Pair Corralation between REGAL HOTEL and AGNC INVESTMENT
Assuming the 90 days trading horizon REGAL HOTEL INTL is expected to under-perform the AGNC INVESTMENT. In addition to that, REGAL HOTEL is 1.54 times more volatile than AGNC INVESTMENT. It trades about -0.01 of its total potential returns per unit of risk. AGNC INVESTMENT is currently generating about 0.03 per unit of volatility. If you would invest 773.00 in AGNC INVESTMENT on November 1, 2024 and sell it today you would earn a total of 161.00 from holding AGNC INVESTMENT or generate 20.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
REGAL HOTEL INTL vs. AGNC INVESTMENT
Performance |
| Timeline |
| REGAL HOTEL INTL |
| AGNC INVESTMENT |
REGAL HOTEL and AGNC INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REGAL HOTEL and AGNC INVESTMENT
The main advantage of trading using opposite REGAL HOTEL and AGNC INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REGAL HOTEL position performs unexpectedly, AGNC INVESTMENT can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in AGNC INVESTMENT will offset losses from the drop in AGNC INVESTMENT's long position.| REGAL HOTEL vs. Apple Inc | REGAL HOTEL vs. Apple Inc | REGAL HOTEL vs. Apple Inc | REGAL HOTEL vs. Apple Inc |
| AGNC INVESTMENT vs. REGAL HOTEL INTL | AGNC INVESTMENT vs. PPHE HOTEL GROUP | AGNC INVESTMENT vs. Meli Hotels International | AGNC INVESTMENT vs. Micron Technology |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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